Section 214 of the Insolvency Act imposes that liability where the director knew, or ought to have concluded, that there was no reasonable prospect that the company would avoid going into insolvent liquidation.

Administration orders were made in respect of the principal companies in the Group in this court on 26 February 1995, and they have subsequently been placed in compulsory insolvent liquidation.

The question is whether he knew or ought to have concluded at some time before the commencement of the winding up that there was no reasonable prospect that VKV would avoid going into insolvent liquidation.